Cash Withdrawal Limit from Bank
09 Feb 2022

Check Your Cash Withdrawal Limit from Bank

Know the bank withdrawal limit for cash transactions.

Key Takeaways

  • Banks set cash withdrawal limits to manage cash flows for all customers.
  • The Reserve Bank of India and banks together determine the cash withdrawal limits in India.
  • Cash withdrawal limits are based on location and type of transaction.
  • Bank Withdrawal limits are the highest for home branch transactions.
  • You must also comply with cash withdrawal limits at ATMs of your own and other bank branches.

Your savings account is a type of account that allows you to deposit and withdraw money at your convenience. It serves as an investment instrument that enables you to take your first step towards corpus creation. However, banks must set cash withdrawal limits to ensure they can cater to the cash flow needs of all their customers. The bank sets these limits in consultation with the Reserve Bank of India. This article explains the standard cash withdrawal limits from banks.

Cash Withdrawal Limit from Banks

Cash Withdrawal Limit is placed on various withdrawal provisions. The limit also differs from branch to branch.

  • Cash withdrawal limits based on Location

    Bank customers residing in metro cities typically have higher expenses. As such, the RBI and banks offer higher cash withdrawal limits to such customers. In comparison, bank withdrawal limits for customers of the same bank with branches in Tier I, II, III cities and semi-rural and rural areas is lower.

  • Cash withdrawal limits for Cheque transactions

    Most banks in India have set a limit of INR 1 lakh on Cash withdrawal limit from bank per day by cheque. This limit typically applies to self-use or self-addressed cheques.

  • Cash withdrawal limit based on account type

    Bank limits also determine limits based on the type of account you hold. Current account holders enjoy higher withdrawal limits than those prescribed for basic savings account holders. However, banks provide priority savings account holders with higher cash withdrawal limits.

  • Cash withdrawal limit based on branch vs non-branch transactions

    Banks typically provide higher cash withdrawal limits when you withdraw money from your home branch. However, the withdrawal limits are typically lower if you opt for withdrawals from non-home branches.

  • Cash withdrawal limits on ATM transactions

    Besides the limits on cash withdrawal from bank per day, you also have to comply with ATM cash withdrawal limits. Your daily cash withdrawal limit at ATMs depends on your account type. It is significantly higher for priority accounts but could be slightly lower for regular accounts.

    Per an RBI mandate, you get 5 free transactions per month at your own bank ATMs and 3 free transactions at other bank ATMs. If you exceed these transactions, you have to pay a fee. This RBI has reviewed the fee structure for exceeding cash transactions at ATMs with effect from January 1, 2022.

  • Cash withdrawal limits for third party transactions

    If a family member or a friend withdraws cash on your behalf, the limit would be lesser. For example, the withdrawal limit for a self-cheque is INR 100,000. However, if the bearer of the cheque is your friend, the cash withdrawal limit would be INR 50,000.

Final Note

You must comply with bank withdrawal limits based on your chosen method of withdrawal. Despite the cash withdrawal limits, it is apparent that you can access funds in your account in several ways that make banking convenient.

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For details on cash withdrawal limits and FAQs please click here.

*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.